MINUTES - Boyup Brook

SPECIAL COUNCIL MINUTES HELD ON 28 MARCH 2019___________________________________________________

1

MINUTES

special meeting held

Thursday, 28 MARCH 2019 Commenced at 5.30PM

At

Shire of boyup brook

ABEL STREET – BOYUP BROOK


2

TABLE OF CONTENTS

1. RECORD OF ATTENDANCE/APOLOGIES/LEAVE OF ABSENCE PREVIOUSLY APPROVED ....... 3

2. PUBLIC QUESTION TIME ....................................................................................................... ..............4

3. APPLICATIONS FOR LEAVE OF ABSENCE ....................................................................................... 4

4. MATTERS REQUIRING A DECISION ................................................................................................... 5

4.1 Adoption of the 2018-19 Shire of Boyup Brook Annual Budget Review..................8

5. MEETING CLOSED……………………………………………………………………………………………..13


3

1. RECORD OF ATTENDANCE/APOLOGIES/LEAVE OF ABSENCE PREVIOUSLY APPROVED

1.1 Attendance

Cr G Aird- Shire President Cr R Walker-Deputy Shire President Cr A Alexander Cr P Kaltenrieder Cr K Moir Cr H O'Connell Cr E Rear STAFF: Mr S Carstairs (Acting Chief Executive Officer)

Mrs M Lane (Executive Assistant)

1.2 Apologies Nil

1.3 Leave of Absence Nil

2. PUBLIC QUESTION TIME

Nil

3. APPLICATION FOR LEAVE OF ABSENCE

Nil MOVED INTO COMMITTEE MOVED: Cr Rear SECONDED: Cr Alexander That the Council move into a committee of the whole under clause 15.6 of the

Standing Orders, Local Law No.1.to allow members free discussion on the matter.

CARRIED 7/0 Res 64/19 Cr Rear left the Chambers at 7.09pm Cr Rear returned to the Chambers at 7.11pm Adjournment

That the meeting be adjourned for an afternoon tea break, the time being 7.14pm.


4

Resumption

That the meeting resume, the time being 7.38pm.

The meeting resumed with the following persons in attendance. Cr G Aird- Shire President

Cr R Walker-Deputy Shire President Cr A Alexander Cr P Kaltenrieder Cr K Moir Cr H O'Connell Cr E Rear Mr S Carstairs (Acting Chief Executive Officer) Mrs M Lane (Executive Assistant)

MOVED OUT OF COMMITTEE

MOVED: Cr Rear SECONDED: Cr Alexander

That the Council moves out of committee of the whole under clause 15.6 of the Standing Orders, Local Law No.1.

CARRIED 7/0 Res 65/19


5

4. MATTERS REQUIRING A DECISION

4.1 Adoption of the 2018-19 Budget Review

Location: Not applicable

Applicant: Not applicable

File:

Disclosure of Interest: Nil

Date: 27 March 2019

Author: Stephen Carstairs - Acting CEO

Authorizing

Officer: Stephen Carstairs - Acting CEO

Attachments: Attachment 4.1 – 2018-19 Statement of Budget Review and Notes.

______________________________________________________________________________

PURPOSE

To consider and adopt the Budget Review as presented in the Statement of Financial Activity for the period 1 July 2018 to 28 February 2019.

BACKGROUND

A Statement of Budget Review incorporating year to date budget variations and forecasts to 30 June 2019 for the period ending 28 February 2019 is presented for council to consider. The Local Government (Financial Management) Regulations 1996, regulation 33A, requires that local governments conduct a budget review between 1 January and 31 March in each financial year. A copy of the review and determination is to be provided to the Department of Local Government within 30 days of the adoption of the review.

DETAILS

The budget review was prepared to include information required by the Local Government Act 1995, Local Government (Financial Management) Regulations 1996 and Australian Accounting Standards. This annual budget review was conducted at the I/E (Income/ Expenditure) code level, specifically targeting actual to budget variances equal to or greater than $2,000 (some smaller variances were included). A reasonable surplus ($225,000) was realised from the review.

Features of the budget review include:


6

OPENING BALANCE (Surplus)/Deficit (19,285)

2017-18 Surplus brought forward which was $41,248 less than that in the Adopted Budget.

(260,714)

OPERATING

Rates No Change

Operating Grants & Comprises: (181,990)

Contributions - FAGS General Purpose Grant increase $174,920

- FAGS Roads Grant decrease -$48,850

- WISE Program Grant $3,000

- Main Roads Direct Grant increase $57,625

Non Operating Grants

Comprises: 775,330

- DFES Fire Appliance replacement deferred to 2019-20 -$335,000

- Stronger Communities Playgroup Shade Sail Grants $14,090

- Cultural Hub Project Grant Income deferred -$525,000

- Cycleways program deferred to 2019-20 -$30,000

- FAGS Special project Grant brought to account $112,055

Fees & Charges Comprises a number of minor variances (<$5,000) 24,990

Interest Revenue Comprises a number of minor variances (<$5,000) (2,080)

Other Revenue Comprises a number of minor variances (<$5,000) 9,000

Employee Costs Comprises: 143,360

- Bush Fire Risk Program transfer to Dardanup $13,165

- Ranger engagement delay $17,950

- Medical Service new GP, additional accreditation and auxiliary

Staff -$191,945

- Medical Services increased Workers Comp -$10,025

- Townsite Gardens under-allocated -$10,975

- Community Development under-allocated -$20,770

- Community Development superannuatn over-allocated $9,425

- Works & Services Supervision savings $39,840

- Works & Services annual leave over-allocated $14,210

- Admin Staff under-allocated -$34,685

- Admin Workers Comp under-allocated -$9,155

- Admin FBT savings $9,375

- Admin Conference & Training savings $12,100

- Admin superannuation under-allocated $26,030


7

- Also includes a number of minor variances (<$5,000)

Material & Contracts

Comprises: (177,930)

- Environmental Health & OSH under-allocated -$9,500

- Medical Service Building Mtce under-allocated -$7,165

- River Environs Plan deferred $20,000

- Bridges Mtce over-allocated $7,000

- Traffic Signs stock deferred $10,000

- Road Inventory condition report deferred $10,000

- Area Promotions deferred $10,000

- Flax Mill & Caravan Park studies & plans deferred $38,500

- Buiding Mtce Officer savings $6,000

- Consultant Engineer savings $36,080

- Plant Parts & Repairs savings $17,105

- Plant licences under-allocated -$8,530

- Admin Consultant savings $10,000

- Local Planning Strategy Savings $10,000

- Purchas of Land expense deferred $7,500


Depreciation Infrastructure Assets revaluations for fair value substantially 587,345

Increased the value of transport and other infrastructure - result

being as substantial increase in 2018-19 depreciation.

Depreciation Movements

Being non-cash, the increased depreciation expense is off-set in

The Statement of Budget Review

(587,345)

Utility Charges Comprises a number of minor variances (<$5,000) 4,085

Insurance Expense Comprises a number of minor variances (<$5,000) 1,920

Interest Expense No change

Other Expenditure Comprises: 16,265

- Community Lions Bus Grant -$8,000


CAPITAL PROGRAM

Investment Properties

Aged Accommodation Project deferred - refer 2018-19 Capital Program attached

(878,080)


8

Buildings Several Building projects deferred - refer 2018-19 Capital Program attached

(1,013,270)

Plant & Equipment A number of acquisitions are to be deferred - refer 2018-19 Capital Program attached

(573,600)

Furniture & Equipment

A number of acquisitions are to be deferred - refer 2018-19 Capital Program attached

(24,350)

Roads, Bridges etc Refer 2018-19 Capital Program attached 47,055

Footpaths & Drainage

Refer 2018-19 Capital Program attached 5,000

Other Infrastructure Refer 2018-19 Capital Program attached 24,010

Sale Proceeds Refer 2018-19 Capital Program attached 461,500

New Borrowings Deferred & refer 2018-19 Capital Program attached 350,000

Transfers to Reserve Deferred & refer 2018-19 Capital Program attached (945,555)

Transfers from Reserve

Deferred & refer 2018-19 Capital Program attached 1,728,625

Difference in funds brought forward

41,248

Overall Change (surplus) (225,000)

Due to the above adjustments the closing funds as at 30 June 2019 are forecast to increase to $225,000.

CONSULTATION

Dominic Carbone (principal, Carbone & Associates), Darren Long (principal, DL Consulting), Kay Raisin – Acting Finance and HR Manager, Steele Alexander – Manager Works & Services, and Daly Winter – Community Emergency & Regulation Services Manager.

STATUTORY ENVIRONMENT

Regulation 33A of the Local Government (Financial Management) Regulations 1996 requires:

(1) Between 1 January and 31 March in each year a local government is to carry out a review of its annual budget for that year.

(2) Consideration and review is to be given to a local government’s financial performance in the period beginning on 1 July and ending no earlier than 31 December in that financial year.


9

(3) Within 30 days after a review of the annual budget of a local government is carried out it is to be submitted to the council.

(4) A council is to consider a review submitted to it and is to determine* whether or not to adopt the review, any parts of the review or any recommendations made in the review.

*Absolute majority required.

(5) Within 30 days after a council has made a determination, a copy of the review and determination is to be provided to the Department.

POLICY IMPLICATIONS

The budget is based on the principles contained within the Community Strategic Plan and Plan for the Future.

FINANCIAL IMPLICATIONS

Specific financial implications are as outlined in the above Table.

STRATEGIC IMPLICATIONS

The Budget Review has been developed based on existing strategic planning documents adopted by council. VOTING REQUIREMENT Absolute Majority required: Yes. TRIPLE BOTTOM LINE ASSESSMENT

Economic Implications

The budget has been reviewed based on tested financial management and accountability principles and is considered to deliver in 2017-18 a sustainable economic outcome for Council and the community.

Social Implications

The budget has been reviewed to deliver social outcomes identified in various planning and community supporting strategies that have previously been adopted by the council.

Environmental Implications

The budget has been reviewed so as to consider key environmental strategies and initiatives as supported by the council.

COMMENT

The budget has been reviewed so as to continue to deliver on other strategies adopted by the council and maintains a high level of service across all programs. The closing funds remain in surplus ($225,000) as a result of this budget review.

The surplus of funds brought forward from 2017-18 decreased by $41,248. At the conclusion of the review, that deficit was eroded to produce a $225,000 surplus.


10

COUNCIL DECISION & OFFICER RECOMMENDATION - Item 4.1

MOVED: Cr Kaltenrieder SECONDED: Cr O'Connell That:

Council adopt the budget review for the period 1 July 2018 to 28 February 2019 (as attached) with variations as follows, and instruct the Acting CEO to amend the budget accordingly:

OPENING BALANCE (Surplus)/Deficit (19,285)

2017-18 Surplus brought forward which was $41,248 less than that in the Adopted Budget.

(260,714)

OPERATING

Rates No Change

Operating Grants & Comprises: (181,990)

Contributions - FAGS General Purpose Grant increase $174,920

- FAGS Roads Grant decrease -$48,850

- WISE Program Grant $3,000

- Main Roads Direct Grant increase $57,625

Non Operating Grants

Comprises: 775,330

- DFES Fire Appliance replacement deferred to 2019-20 -$335,000

- Stronger Communities Playgroup Shade Sail Grants $14,090

- Cultural Hub Project Grant Income deferred -$525,000

- Cycleways program deferred to 2019-20 -$30,000

- FAGS Special project Grant brought to account $112,055

Fees & Charges Comprises a number of minor variances (<$5,000) 24,990

Interest Revenue Comprises a number of minor variances (<$5,000) (2,080)

Other Revenue Comprises a number of minor variances (<$5,000) 9,000

Employee Costs Comprises: 143,360

- Bush Fire Risk Program transfer to Dardanup $13,165

- Ranger engagement delay $17,950

- Medical Service new GP, additional accreditation and auxiliary

Staff -$191,945

- Medical Services increased Workers Comp -$10,025

- Townsite Gardens under-allocated -$10,975

- Community Development under-allocated -$20,770

- Community Development superannuatn over-allocated $9,425

- Works & Services Supervision savings $39,840


11

- Works & Services annual leave over-allocated $14,210

- Admin Staff under-allocated -$34,685

- Admin Workers Comp under-allocated -$9,155

- Admin FBT savings $9,375

- Admin Conference & Training savings $12,100

- Admin superannuation under-allocated $26,030


Material & Contracts

Comprises: (177,930)

- Environmental Health & OSH under-allocated -$9,500

- Medical Service Building Mtce under-allocated -$7,165

- River Environs Plan deferred $20,000

- Bridges Mtce over-allocated $7,000

- Traffic Signs stock deferred $10,000

- Road Inventory condition report deferred $10,000

- Area Promotions deferred $10,000

- Flax Mill & Caravan Park studies & plans deferred $38,500

- Buiding Mtce Officer savings $6,000

- Consultant Engineer savings $36,080

- Plant Parts & Repairs savings $17,105

- Plant licences under-allocated -$8,530

- Admin Consultant savings $10,000

- Local Planning Strategy Savings $10,000

- Purchas of Land expense deferred $7,500


Depreciation Infrastructure Assets revaluations for fair value substantially 587,345

Increased the value of transport and other infrastructure - result

being as substantial increase in 2018-19 depreciation.

Depreciation Movements

Being non-cash, the increased depreciation expense is off-set in

The Statement of Budget Review

(587,345)

Utility Charges Comprises a number of minor variances (<$5,000) 4,085

Insurance Expense Comprises a number of minor variances (<$5,000) 1,920

Interest Expense No change

Other Expenditure Comprises: 16,265

- Community Lions Bus Grant -$8,000


12


CAPITAL PROGRAM

Investment Properties

Aged Accommodation Project deferred - refer 2018-19 Capital Program attached

(878,080)

Buildings Several Building projects deferred - refer 2018-19 Capital Program attached

(1,013,270)

Plant & Equipment A number of acquisitions are to be deferred - refer 2018-19 Capital Program attached

(573,600)

Furniture & Equipment

A number of acquisitions are to be deferred - refer 2018-19 Capital Program attached

(24,350)

Roads, Bridges etc Refer 2018-19 Capital Program attached 47,055

Footpaths & Drainage

Refer 2018-19 Capital Program attached 5,000

Other Infrastructure Refer 2018-19 Capital Program attached 24,010

Sale Proceeds Refer 2018-19 Capital Program attached 461,500

New Borrowings Deferred & refer 2018-19 Capital Program attached 350,000

Transfers to Reserve Deferred & refer 2018-19 Capital Program attached (945,555)

Transfers from Reserve

Deferred & refer 2018-19 Capital Program attached 1,728,625

Difference in funds brought forward

41,248

Overall Change (surplus) (225,000)

CARRIED 7/0 Res 66/19

5 CLOSURE OF MEETING

There being no further business the Shire President, Cr Aird thanked all for attending and declared the meeting closed at 9.10pm.

Documents

MINUTES - Boyup Brook